Da Nang says it sells cheap land to improve city
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The Da Nang People’s Committee and its relevant agencies Monday held a meeting with Tuoi Tre’s representatives after the newspaper reported the committee had sold many prime pieces of real estate to certain companies at dirt cheap prices, defying land management regulations.
Tran Van Minh, head of the municipal people’s committee, said Da Nang has been using the policy of auctioning off land to mobilize social investment in order to develop the economy and increase the city’s budget.
Thanks to this policy, the city has mobilized thousands of billions of dong for its infrastructural and eco-social development.
Speaking of 5.5 hectares of land in the city center, which Tuoi Tre reported had been given to the Thien Thanh Corporation for VND25.3 million (US$1,265) per square meter, or a third of the market price, Minh said they had auctioned off the land by posting announcements in Da Nang Police and Nguoi Lao Dong newspapers beginning on September 22 last year.
But Thien Thanh was the only investor that agreed to the project, so the city had to give the land to them, he said.
When asked why the committee gave a term of only 14 days, from September 22 to October 6, instead of 30 days as required by the government auction regulation, Minh said they had followed the law, but refused to elaborate.
When Tuoi Tre mentioned the 23,000-square-meter plot at 209 Truong Chinh Street, which was also given to Thien Thanh for a cheap price without passing an auction, Minh said the plot was not “prime land.”
Earlier, Da Nang had directly transferred the land to Thien Thanh and only charged them VND40 billion ($2 million) for the right to use it.
Tuoi Tre’s representative said this move was against land management regulations because the actual value of the plot, according to the price required by Da Nang, could be as much as VND140 billion ($7 million).
In response, Minh said the city had transferred the land to Thien Thanh as required by an order from the Ministry of Defence.
Minh also said the transaction in which the 15,421-square-meter plot on Truong Sa Street was sold to Bac Nam 79 Corporation for VND3.7 million ($185) per square meter, which is lower than the required price of VND4.5 million ($225), is also “a response to the Ministry of Public Security’s request.”
As for the 71,000-square-meter land near the Dong Nam Dai Tuong Niem Park, which was sold to Nam Viet A Corporation for VND7 million ($350) per square meter, VND900,000 lower than required, Minh said they had also called for investment here and Nam Viet A was the only firm to respond.
Minh said there was nothing wrong with Da Nang charging Nam Viet A VND7 million ($350) for the area of 44,428 square meters.
But when Tuoi Tre asked why the city charged Nam Viet A for only 62 percent of the required selling price, Minh said it was because the land had no infrastructure.
He said the remaining 38 percent of the plot would be used to build roads and parks so they could not grant land use rights for it.
However, Tuoi Tre’s investigation found that the whole area of 71,463 square meters was sold for VND7 million ($350) per square meter.
